What are the pros and cons of paying out cash dividends

Reference no: EM131290348

What are alternative ways in which investors can receive a cash return from their investment in the equity of a company? From a tax standpoint, which of these would be preferred, assuming that investors pay a 35 percent tax rate on dividends and a 15 percent tax rate on capital gains? What if investors faced the same 15 percent tax on income and capital gains? What are the pros and cons of paying out cash dividends?

Reference no: EM131290348

Questions Cloud

Did nestle undergo either first order or second order change : Did Nestle undergo either first-order and/or second-order change according to the case?- Discuss the differences and similarities between his view and your view of what has occurred at Nestle, both historically and in recent times.

Forms of organisational information systems : BMIT 5103 INFORMATION TECHNOLOGY FOR MANAGERS General literature writes up on the evolution of Information Systems and Identify and discuss key problems faced by the selected organisation. You are expected to analyse the problem and discuss the impa..

Arizona department of commerce : In your morning mail, you've received a letter from the Arizona Department of Commerce. Because you have been contributing to the Job Training Fund, you are eligible to apply for a $7,000 grant to help pay for the delivery of customized job-relate..

Reviewing some of the documentation : During the initial setup and implementation of the Web site, you have been reviewing some of the documentation, scripts, and sample files that were installed on the Linux and Apache environment. In more than one place, you have noticed several fam..

What are the pros and cons of paying out cash dividends : What if investors faced the same 15 percent tax on income and capital gains? What are the pros and cons of paying out cash dividends?

What comprises the lessees minimum lease payments : A company has sales of $752,800 and cost of goods sold of $301,800 Its gross profit equals. What is the breakeven point in units? What comprises the lessee's minimum lease payments? What is excluded?

Training and development strategy : Looking for original work: Develop a 1,750-word training and development strategy for your chosen company, including:

What was delta''s payout ratio for fiscal year 2008 : If Delta's managers want to follow a constant payout ratio dividend policy, what dividend per share will they declare for fiscal year 2010? d. If Delta's managers want to follow a partial-adjustment strategy, with a target payout ratio equal to FY..

Company is considering an investment : A company is considering an investment that will return $20,000 semiannuall at the end of each semiannual period for 4 years. If the company requires an annual return of 10%, what is the maximum amount it is willing to pay for this investment?

User Account

All Pages